La Finance

Finance Minister Joseph Caillaux appeared, one bright morning last week, before the Finance Commission of the Chamber of Deputies. To the gentlemen present he said that the "balanced" budget devised by his predecessor M. Clementel was in reality short on the credit side some three and a half billion francs. It appeared that M. Clementel was banking on receipts from Germany which had not been received-a favorite French practice-and had neglected altogether a mere matter on the debit side of some $87,500,000.

M. Caillaux made it clear that the budget, which he had revised, would balance without recourse to expectations. He proposed to raise some four billions of francs by:

1) A 33% tax increase on tobacco

2) An increase (unspecified) on the salary tax

3) A special measure to force French insurance companies to reinsure with the Government instead of abroad as at present.

The French public, which half expected a capital tax or the sale of some colonies, was much relieved at the Finance Minister's moderation and almost forgave him for increasing taxes.

He also said that the receipts from Germany would be utilized as follows: two-thirds for reconstruction work, one-third for payment of the U.S. and British debts. There was no possibility, he averred, of improvement in the position of the franc until France's external debt had been settled.

A day later, Premier Paul Painleve announced that negotiations with the U.S. would begin in Paris on June 1 concerning a settlement of the U.S. debt.